Performance, promotion, and the Peter Principle

This paper considers why organizations use promotions, rather than just monetary bonuses, to motivate employees even though this may conflict with efficient assignment of employees to jobs. When performance is unverifiable, use of promotion reduces the incentive for managers to be affected by influe...

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Bibliographic Details
Main Authors: Malcomson, J, Fairburn, J
Format: Working paper
Published: University of Oxford 2000